Federated to Buy Joseph Horne, Merge it into Lazarus
NEW YORK -- Federated Department Stores plans to enter the Pittsburgh and Erie, Pa., markets by purchasing the troubled 10-unit Joseph Horne Co. and combining it with its 40-unit Lazarus division. Federated said Friday it has signed a letter of intent...
NEW YORK -- Federated Department Stores plans to enter the Pittsburgh and Erie, Pa., markets by purchasing the troubled 10-unit Joseph Horne Co. and combining it with its 40-unit Lazarus division. Federated said Friday it has signed a letter of intent to buy Horne's. That confirmed a WWD report, April 28, of a possible sale.
A purchase price was not disclosed, but Federated said the deal is expected to close by late May or early June and would give more details of the acquisition at that time. By fall, the Horne stores will be renamed Lazarus, the company added.
The deal will most directly affect the 250 staffers in Horne's central office, many of whom are likely to be out of work. Federated said each will be interviewed by Lazarus management during a six-month transition period.
"Assuming the deal goes through, there could be opportunities in Lazarus in Pittsburgh, in Lazarus's Cincinnati offices and with Federated," a Federated spokeswoman said. Lazarus and Federated are both based in Cincinnati.
Horne's has a total work force of 2,000.
Michael L. Pulte, Horne's chairman, chief executive and president, said he did not know whether he would remain with the company.
Lazarus ranks as Federated's fourth largest division, registering 1993 sales of $965 million. Abraham & Straus/Jordan Marsh is the largest division, with $1.39 million in sales last year, followed by Burdines and Bloomingdale's. Federated also operates Rich's, The Bon Marche and Stern's. Horne's has been on the block since the beginning of the year. It lost $8.5 million in the nine months ended Oct. 31, 1993 and posted sales of about $215 million in 1993.
Federated said due to operating efficiencies arising from the merger, it expects the Horne stores to be profitable in 1995. However, one-time costs associated with the merger will cut into Federated's 1994 earnings. Allen Questrom, Federated's chairman and chief executive officer, in a statement, called Federated's expansion into Pittsburgh, a market with two million people, a "strategic growth" move.
Federated officials said Lazarus and Horne's serve markets with similar demographics and that the stores from both companies are similar in size. The average Lazarus unit is 153,000 square feet, while Horne's stores average 149,000 square feet."We believe that by merging these stores into the successful Lazarus operation they will benefit from added merchandising strength, increased operating efficiencies and vastly improved economies of scale, which will result in improved sales and earnings performance for all of Federated," the Questrom statement added.
Federated is also engaged in an attempt to merge with R.H. Macy & Co.
Horne's was a division of the former Associated Dry Goods until 1986, when May Department Stores took over ADG and divested Horne's to a group including Equitable Assurance, Mitsui USA and Massachusetts Mutual Life Insurance, the principal shareholders.
@chanel and @pharrell dropped what’s being dubbed as the world’s most exclusive sneakers yesterday. The Adidas Originals NMD Hu, which Williams designed in collaboration with Chanel and @adidasoriginals, has a waiting list of over 120K people who pre-registered online at chanelatcolette.fr –– and only 500 pairs are on sale. The singer predicted the resale value of the shoes could reach $40K. Read the full interview on WWD.com. Link in bio. #wwdfashion
@imanshumpert is diving deeper into his creative endeavors and relaunching his clothing line, Post 90s, and is helping to raise money for the hurricane victims in St. Maarten with a jersey he’s designed with his brother. The Cleveland Cavaliers player talked to WWD about kneeling during the national anthem, working with fashion brands and how he wants to be more than an @nba player. Read the interview on WWD.com #wwdfashion (📷: George Chinese)
Not only does #TheProfit return to CNBC tonight, but @marcuslemonis has launched @shopmarcus, a new shopping and lifestyle retail experience in Aspen and Chicago, with more locations to come. The retail stores offer in-store stylists and a variety of contemporary womenswear selections.
“It’s life, I’m going to face it,” @mingxi11 sighed. “I fell, but you know, I think the most important thing is that I get back up. I had the love, the help from my sister — the girl next to me Gizele [Oliveira] — she’s so nice. When I went backstage everybody was trying to comfort me like ‘Oh Ming, it’s OK.’ I’m really, really touched. I think it’s them who gave me the courage to go back on stage for the finale,” Xi told WWD of her fall at the @victoriassecret fashion show. (📷: David Fisher) #wwdfashion #vsfashionshow #victoriassecret
@louisvuitton tapped @therealpeterlindbergh for its latest city-centric photo book, which is part of a series called Fashion Eye. The primarily black and white book captures the spirit of Berlin in 57 images shot between 1989 and 2019. “Berlin is an inspiration for me, more than a city. I mean @millajovovich is simply Berlin!” said Lindbergh. #wwdfashion
“You know, I think audiences expect a certain performance so I have to deliver to them what they’re expecting to a certain degree. But I’m also a different actor and a different person, I have my own spin on the character,” says @noahegalvin of his takeover of the leading role in “Dear Evan Hansen” following the departure of @bensplatt, who originated the role. Read WWD’s interview with the 23-year-old actor on WWD.com #wwdeye (📷: @jilliansollazzo)
For pre-fall 2018, @etro created richly-colored wonderland, using tapestries, textiles and wallpapers from the Eastern world at large. The line featured floral and graphic prints and jacquard motifs, like this two-piece look featured here. #wwdfashion (📷: Giovanna Pavesi)
@kith is moving into children’s. The men’s and women’s streetwear brand has launched Kidset, a Kith kids line located in New York at 64 Bleecker Street. The line includes mini versions of staple Kith pieces like the Astor bomber jacket and the Kith box logo sweatshirts, along with a wall that can display up to 120 pairs of shoes from @adidas, @newbalance, @timberland and more. #wwdfashion
“I just wanted to create this fully rounded character, but I do think what excited me most was just the opportunity to give a group of people representation that I feel needs it. I like to do characters in projects that stand for something and Karolina definitely does, so that was really exciting to me,” @ginnygardner says of her new role in @hulu’s “The Runaways.” Gardner plays Karolina Dean, a queer superhero, which is a rarity for @marvel. Read more about Gardner’s character on WWD.com #wwdeye (📷: @dandoperalski)